Page 234 - Individual Forms & Instructions Guide

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Unrecaptured Section 1250 Gain Worksheet—Line 19 Keep for Your Records

If you aren't reporting a gain on Form 4797, line 7, skip lines 1 through 9 and go to line 10.
1. If you have a section 1250 property in Part III of Form 4797 for which you made an entry in Part I of Form 4797 (but
not on Form 6252), enter the smaller of line 22 or line 24 of Form 4797 for that property. If you didn't have any such
property, go to line 4. If you had more than one such property, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the amount from Form 4797, line 26g, for the property for which you made an entry on line 1 . . . . . . . . . . . . . 2.
3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter the total unrecaptured section 1250 gain included on line 26 or line 37 of Form(s) 6252 from installment sales
of trade or business property held more than 1 year. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Enter the total of any amounts reported to you on a Schedule K-1 from a partnership or an S corporation as
“unrecaptured section 1250 gain” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Add lines 3 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Enter the smaller of line 6 or the gain from Form 4797, line 7 . . . . . . . . . . . . . . . . . . . . . 7.
8. Enter the amount, if any, from Form 4797, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9. Subtract line 8 from line 7. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Enter the amount of any gain from the sale or exchange of an interest in a partnership attributable to unrecaptured
section 1250 gain. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Enter the total of any amounts reported to you as “unrecaptured section 1250 gain” on a Schedule K-1, Form
1099-DIV, or Form 2439 from an estate, a trust, a real estate investment trust, or a mutual fund (or other regulated
investment company) or in connection with a Form 1099-R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the total of any unrecaptured section 1250 gain from sales (including installment sales) or other dispositions of
section 1250 property held more than 1 year for which you didn't make an entry in Part I of Form 4797 for the year of
sale. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Add lines 9 through 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. If you had any section 1202 gain or collectibles gain or (loss), enter the total of lines 1
through 4 of the 28% Rate Gain Worksheet. Otherwise, enter -0- . . . . . . . . . . . . . . . . . 14.
15. Enter the (loss), if any, from Schedule D, line 7. If Schedule D, line 7, is zero or a gain,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. ( )
16. Enter your long-term capital loss carryovers from Schedule D, line 14; and Schedule K-1
(Form 1041), box 11, code D* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. ( )
17. Combine lines 14 through 16. If the result is a (loss), enter it as a positive amount. If the result is zero or a gain,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
18. Unrecaptured section 1250 gain. Subtract line 17 from line 13. If zero or less, enter -0-. If more than zero, enter the
result here and on Schedule D, line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.
* If you are filing Form 2555 (relating to foreign earned income), see the footnote in the Foreign Earned Income Tax
Worksheet in the Instructions for Form 1040 before completing this line.

Line 10. Include on line 10 your share Installment sales. To figure the is treated as unrecaptured section 1250
of the partnership's unrecaptured section amount to include on line 12, follow the gain until the total unrecaptured section
1250 gain that would result if the part- steps below for each installment sale of 1250 gain figured in Step 2 has been
nership had transferred all of its section property held more than 1 year for used in full. Figure the amount of gain
1250 property in a fully taxable transac- which you didn't make an entry in Part I treated as unrecaptured section 1250
tion immediately before you sold or ex- of your Form 4797 for the year of sale. gain for installment payments received
changed your interest in that partnership. • Step 1. Figure the smaller of (a) in 2022 as the smaller of (a) the amount
If you recognized less than all of the re- the depreciation allowed or allowable, or from line 26 or line 37 of your 2022
alized gain, the partnership will be trea- (b) the total gain for the sale. This is the Form 6252, whichever applies; or (b)
ted as having transferred only a propor- smaller of line 22 or line 24 of your the amount of unrecaptured section 1250
tionate amount of each section 1250 2022 Form 4797 (or the comparable gain remaining to be reported. This
property. For details, see Regulations lines of Form 4797 for the year of sale) amount is generally the total unrecap-
section 1.1(h)-1. Also, attach the state- for the property. tured section 1250 gain for the sale re-
ment required under Regulations • Step 2. Reduce the amount figured duced by all gain reported in prior years
section 1.1(h)-1(e). in Step 1 by any section 1250 ordinary (excluding section 1250 ordinary in-
Line 12. An example of an amount to income recapture for the sale. This is the come recapture). However, if you chose
not to treat all of the gain from payments
amount from line 26g of your 2022
include on line 12 is unrecaptured sec- Form 4797 (or the comparable line of received after May 6, 1997, and before
tion 1250 gain from the sale of a vaca- Form 4797 for the year of sale) for the August 24, 1999, as unrecaptured sec-
tion home you previously used as a rent- property. The result is your total unrec- tion 1250 gain, use only the amount you
al property but converted to personal use aptured section 1250 gain that must be chose to treat as unrecaptured section
prior to the sale. To figure the amount to allocated to the installment payments re- 1250 gain for those payments to reduce
enter on line 12, follow the applicable ceived from the sale. the total unrecaptured section 1250 gain
instructions below.
• Step 3. Generally, the amount of remaining to be reported for the sale. In-
capital gain on each installment payment clude this amount on line 12.

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